Claim Settlement Ratio of 99.02%~


  • World's First Music Video Created Retired Senior Citizens

  • Apne life goals ki guaranteed1 hona Ye Bhi Sahi Hai

  • Fulfill your Life Goals with Bajaj Allianz Life Goal Assure

  • Here's a Comprehensive Tool To Plan Your Child's Future

  • There is lot to remember in Life, Set renewal premium payments to Auto Pay

  • Get Life Cover worth Rs.1 Crore at Rs.20 per day2 – Bajaj Allianz Life Smart Protect Goal

  • Get your Life Goals Done with Bajaj Allianz Life Smart Assist – BINA MILEY MIL-KAR

  • Paying your Renewal Premium is Quick and Easy!

  • Know the right amount of Insurance you need in just a few steps!

  • Avail Term Insurance Tax Benefits under Section 80D

  • Know how to invest money during the covid-19 pandemic!


Thanks for sharing your details, A Sales representative from
Bajaj Allianz Life will contact you shortly.

Dear Customer, we request you to connect with us in our next business working hours, (Monday to Saturday 24*6) Thank you, Have a great day ahead


Terms & Conditions

I hereby authorize Bajaj Allianz Life Insurance Co. Ltd. to call me on the contact number made available by me on the website with a specific request to call back. I further declare that, irrespective of my contact number being registered on National Customer Preference Register (NCPR) or on National Do Not Call Registry (NDNC), any call made, SMS or WhatsApp sent in response to my request shall not be construed as an Unsolicited Commercial Communication even though the content of the call may be for the purposes of explaining various insurance products and services or solicitation and procurement of insurance business


Please refer to BALIC Privacy Policy

In this policy, the investment risk in investment portfolio is borne by the policy holder.

Strong Long Term Fund Performance Track Record**

One Of The Most Trusted Brands#

What are the tax benefits on ULIP pension plan for NRIs?

Tax Benefits~ On Online ULIP Plans

Please enter a Name
Please enter a Mobile No.
Please check the box to proceed
WS_LIGuideHome_Banner_EN 307 38983691 WS_LIGuideHome_Banner_HI 307 38983695
WS_LIGuideHome_Banner_Mob_EN 307 38983693 WS_LIGuideHome_Banner_Mob_HI 307 38983677
Please Select Language

**, #, T&C Apply | BJAZ-WB-EC-02755/21

**, #, T&C Apply | BJAZ-WB-EC-02755/21

Tax Benefits on ULIP pension plan for NRIs


April 07, 2021

By : Bajaj Allianz Life

Non-resident Indians have many investment options to choose from if they wish to invest in India. ULIP pension plans offer many benefits for NRI investors. To learn more about ULIP benefits and specifically, ULIP tax benefits, for non-resident Indian investors, let’s start by understanding the answer to ‘What is a ULIP policy?


What is a ULIP policy?


A ULIP policy or a Unit Linked Insurance Plan is an investment option that gives investors the opportunity to enjoy the dual advantage of investment coupled with insurance coverage. The insurer offers the policyholder a life cover, which acts as a safety net for their loved ones. The policyholder pays the insurer premiums on a periodic basis.

Furthermore, the policyholder can also choose to invest in their choice of equity funds, debt funds, etc. These funds can give policyholders market-linked returns, which is another one of the many ULIP Benefits to look forward to.


Can NRIs purchase ULIPs in India?


Yes, Non-resident Indians (NRIs) can undoubtedly invest in ULIPs in India. As per the Foreign Exchange Management Act (FEMA), NRIs are permitted to make investments in India; This also includes investments in Unit Linked Insurance Plans. Consequently, NRIs who wish to purchase ULIPs in India can do so after satisfying all the Know Your Customer (KYC) norms for investing in such life insurance-investment plans.


How can NRIs purchase ULIP pension plans in India?


If you are an NRI who wishes to avail ULIP benefits, you can do so by comparing the different options and selecting a plan that suits your needs. Once you zero in on a plan, you need to fill out the application form and submit the requisite documents.

Generally, these are the proofs that you will need to invest in ULIPs if you are an NRI.

  • A scanned copy of your passport, which acts as a proof of your age and identity
  • A recent passport-sized photograph
  • Proof of residence in India
  • Proof of residence overseas
  • Proof of income
  • Overseas Citizenship of India (OCI) or Persons of Indian Origin (PIO) Card
  • A copy of your PAN care or Form 60 if you possess income earned in India
  • A Foreign Residency Supplementary Questionnaire for NRIs or PIOs
  • Medical examination report as may be required
  • Any other document as may be required from KYC and AML perspective

Your insurer will need these documents, as they are required to comply with the applicable Anti-Money Laundering and Know Your Customer (KYC) norms.

NRIs can pay the premiums to the insurer using any of the following accounts:

  • Any Indian bank account
  • Any NRE or NRO account maintained with an Indian bank

NRIs can also use any of the following methods to pay the premium regularly.

  • Domestic or international credit cards
  • Internet banking
  • Debit cards
  • Online wallets like PayTM and Google Pay
  • Credit Card Standing Instructions (CCSI)
  • National Automated Clearing House (NACH)


How do ULIPs help NRIs save on their income tax liability?


Now that you know the general procedure involved, let us look at the ULIP tax benefits available to NRIs.

1. Tax benefit on the premiums paid

Section 80C of the Income Tax Act, 1961, allows taxpayers to claim the premiums paid for ULIPs as a deduction up to Rs. 1.5 lakh, provided the amount of premium is less than or equal to 10% of the capital sum assured (for ULIP policies purchased on or after April 1 2012) and up to 20% of the capital sum assured before 1 April 2012.

NRIs who have purchased a ULIP can also benefit from this deduction.

2. Tax benefit on maturity/death benefits

In case of the policyholder’s death during the tenure of the plan, the death benefits received by the nominees are exempt from tax, as per section 10(10D) of the Income Tax Act, 1961. Note that Death benefit under Key man policy is taxable subject to the provisions stated therein. The maturity benefits received by the policyholder are also tax-free as per the provisions of the same section, subject to the following conditions.

  • For ULIP policies purchased on or after April 1 2012, this benefit is available on the condition that the amount of premium is less than or equal to 10% of the capital sum assured.
  • For ULIPs purchased before April 1 2012, the benefit u/s 10(10D) can be availed when the premium is less than or equal to 20% of the capital sum assured.

As per the new provisions introduced in Budget 2021, the maturity proceeds will be tax-free only if the annual premium paid does not exceed Rs. 2.5 lakh subject to the satisfaction of the conditions under Section 10(10D) as mentioned above. If you invest more than Rs. 2.5 lakh in ULIPs, the income or the returns on maturity will be subject to capital gains tax. This is applicable only for policies purchased on or after February 1, 2021.

Note: Top up premium would also be considered for determining annual premium for taxation subject to conditions stated therein.

3. Taxation on capital gains

Gains on ULIPs are exempt from Long Term Capital Gains (LTCG) tax, provided the annual premium paid does not exceed Rs. 2.5 lakh. NRIs can also take advantage of these ULIP benefits.




That sums up the tax benefits on ULIP pension plans for NRIs. With this investment option, NRIs can ensure that they receive guaranteed benefits that they can rely on during the retirement phase in life. Keeping these tax benefits in mind, it can be easier to go about tax planning and reduce the overall burden of taxation.


Bajaj Allianz Life Videos


Bajaj Allianz Life | Children's Day

Contact Us

Bajaj Allianz Life Insurance Company Ltd.

Bajaj Allianz House, Airport Road, Yerawada, Pune - 411 006, Maharashtra

Tel No: 020-66026773

Fax No: 020-66026789

Branch Visit Timings:

Monday to Friday - 9:00 AM to 3:30 PM

Saturday - 9:00 AM to 1:00 PM

Customer Care Helpline:


Monday to Sunday: 9:00 AM to 7:00 PM (IST)

NRI Services Helpline

24/7 (All week days)

Sales Enquiry Helpline:


Monday to Saturday: 9:00 AM to 7:00 PM (IST)

For NRI: +91-20-35125850 (Call charges apply)

Monday to Saturday: 9:00 AM to 7:00 PM (IST)

Find Us Online

#Survey conducted by brand equity – Nielsen in March 2020

~Tax benefits as per prevailing Income tax laws shall apply. Please check with your tax consultant for eligibility.

**Past performance is not indicative of future performance.

The above information is for general understanding and is meant to educate the general public at large. The reader will have to verify the facts, law and content with the prevailing tax statutes and seek appropriate professional advice before acting on the basis of the above information.